The Nigerian Education Loan Fund (NELFUND) says demand for student loans has been overwhelming as more Nigerian students seek financial support to remain in tertiary institutions.
NELFUND Managing Director and Chief Executive Officer, Akintunde Sawyerr, disclosed this during an interview on Channels Television’s Sunday Politics programme.
Sawyerr said the student loan scheme had provided a lifeline for students who would otherwise struggle to finance their education.
“The demand has been overwhelming, because clearly a lot of people have struggled to get into these institutions,” he said. “They are hanging on by the skin of their teeth to stay in the institution, and this programme came as a rescue for them.”
According to him, NELFUND is analysing the growing demand and disbursement figures to better understand the financial requirements of the scheme.
Sawyerr said the fund had so far disbursed ₦162 billion in upkeep allowances to students as the government-backed programme continues to expand across public tertiary institutions.
He added that the scheme was beginning to influence competition among tertiary institutions by giving students greater financial flexibility in choosing where to study.
NELFUND Rejects Political Bias Claims
Sawyerr dismissed allegations that NELFUND favours children of members of the All Progressives Congress (APC), describing the claim as “completely ridiculous”.
He said the system was designed “without bias”, political affiliation or other considerations, stressing that beneficiaries are selected according to established criteria.
On how the fund identifies students who cannot afford their fees, Sawyerr said NELFUND relies on available information and established processes to determine eligibility.
He also cited research indicating that the scheme had contributed to a reduction in student dropout rates, putting the reduction at 20 per cent.
Repayment Based on Ability to Pay
On repayment, Sawyerr maintained that beneficiaries should not face an undue burden, saying the system was structured around their ability to repay.
He added that beneficiaries would become increasingly traceable as the repayment system develops.
The NELFUND chief executive also addressed President Bola Tinubu’s announcement that funds recovered by the Economic and Financial Crimes Commission (EFCC) would be used to support the student loan scheme.
Sawyerr said the funds had not yet been received by NELFUND.
The student loan scheme was established under the Student Loans Act signed into law by President Tinubu in April 2024. It provides interest-free financial support to eligible Nigerian students in public tertiary institutions.
The scheme covers approved institutional charges and upkeep allowances, with repayment scheduled to begin two years after completion of the National Youth Service Corps (NYSC) programme.
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